Emissions returns

Participants in the Emissions Trading Scheme (ETS) must file emissions returns at certain times to calculate changes in the carbon stock of their forest. This determines whether they should pay or receive New Zealand Units (NZUs). Find out how and when to file a return.

What is an emissions return?

An emissions return is a calculation of the changes in a forest's carbon stock during a certain period. This is based on how much carbon is stored in your forest.

When do you have to complete an emissions return?

If you have post-1989 forest registered in the ETS, you must complete an emissions return:

within 6 months of the end of a mandatory emissions return period (the 2013 to 2017 period ended on 31 December 2017)

when making changes to your registration, such as:

removing forest from the ETS (for example, through deforestation)

granting a forestry lease or right

selling forest to another party.

Mandatory emissions returns

Participants have until 30 June 2018 to complete their mandatory emissions returns for the 2013 to 2017 period. Failing to do so is an offence under the Climate Change Response Act 2002.

All participants registered at 31 December 2017 must complete their mandatory emissions return, regardless of whether they submitted voluntary emissions returns during the period.

To complete your emissions return for the 2013 to 2017 period, either:

Deforesting pre-1990 forest land

If you are deforesting pre-1990 forest land, you'll need to submit an emissions return between 1 January and 31 March in the year immediately after.

Voluntary emissions returns

You also can choose to submit a voluntary emissions return for post-1989 forest each year to claim carbon credits (NZUs). You must file your return between 1 January and 30 June to claim or surrender units for the previous calendar year (or years).

File emissions returns online

Some emissions returns can be completed using MPI's ETS online transaction system:

Claiming and surrendering carbon credits (NZUs)

Calculating changes in forest carbon stocks

When submitting your emissions return, you'll need to calculate changes in the carbon stock of your forest. The carbon stock is how much carbon is contained within the forest.

How you calculate this depends on the forest size.

For areas less than 100 hectares

Use the look-up tables (taken from the Climate Change (Forestry Sector) Regulations 2008). These give pre-calculated values for a forest's carbon stock based on its age, region (if the forest is Pinus radiata), and forest type.

For areas 100 hectares or more (post-1989 forest)

You must use the Field Measurement Approach (FMA). This involves measuring the trees at specific sample plots and submitting this information in the required format to MPI. MPI then uses the data to create participant-specific look-up tables for you to use. These tables provide the carbon stock in your forest.

Find out more

Claiming or paying units

If your emissions return shows a net increase in carbon stocks, you will be able to claim NZUs. Units are typically transferred to your NZETR holding account within 20 working days of submitting your emissions return.

Paying units owed

Post-1989 forest land – if the carbon stock of your forest has decreased, you must pay units owed within 20 working days of submitting your emissions return.

Pre-1990 forest land – if you've deforested pre-1990 forest land, you must pay units by 31 May of the year you submit your emissions return.

Penalties and offences

MPI monitors and audits post-1989 and pre-1990 forest land participants.

You may face a penalty, fine or conviction if you:

don't file mandatory emissions returns by the due date

are late paying units that you owe

have calculated returns incorrectly and have surrendered the wrong number of units.

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